I didn't understand what the empty boxes are supposed to be. Can someone clarify this process please? Thanks!

This might not follow the sequence of your screen grab but it does the same thing. 1. [2nd] + [ICONV] You should see "NOM" which is the nominal rate, key in 10 and press [ENTER]. 2. press arrow down twice till you see C/Y type in 12 and press [ENTER] (that's amount of times to compound a year) 3. press arrow UP to "EFF". That's the effective rate, press CPT to get the EAR.

The blanks are for the arrow keys. In your example Nom = 10, C/Y = 12 and then you compute EFF. Its probably just as quick to work it out though.

A CFA Level 1 Discussion About EAR On The Calculator

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This topic has 3 replies, 3 voices, and was last updated Apr-175:03 am by Snippy.

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- Snippy
  Participant
  - CFA Level 2
  24 Apr 2017 at 4:55 am
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  I didn’t understand what the empty boxes are supposed to be. Can someone clarify this process please?
  
  Thanks!
- vincentt
  Participant
  - CFA Level 3
  24 Apr 2017 at 5:00 am
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  4
  ::
  This might not follow the sequence of your screen grab but it does the same thing.
  
  1.
  [2nd] + [ICONV]
  You should see “NOM” which is the nominal rate, key in 10 and press [ENTER].
  
  2. press arrow down twice till you see C/Y
  type in 12 and press [ENTER] (that’s amount of times to compound a year)
  
  3. press arrow UP to “EFF”.
  
  That’s the effective rate, press CPT to get the EAR.
- Swift
  Participant
  24 Apr 2017 at 5:00 am
  Up
  4
  ::
  The blanks are for the arrow keys. In your example Nom = 10, C/Y = 12 and then you compute EFF. Its probably just as quick to work it out though.
- Snippy
  Participant
  - CFA Level 2
  24 Apr 2017 at 5:03 am
  Up
  2
  ::
  Got it. Thanks @vincentt & @Swift 😀
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